John Hancock Debt
| JHS Stock | USD 11.53 0.03 0.26% |
John Hancock Income holds a debt-to-equity ratio of 0.596. Short and Long Term Debt is likely to gain to about 86.3 M in 2024, whereas Long Term Debt is likely to drop slightly above 188.3 K in 2024. . John Hancock's financial risk is the risk to John Hancock stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
John Hancock's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. John Hancock's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps John Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect John Hancock's stakeholders.
For most companies, including John Hancock, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for John Hancock Income, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, John Hancock's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 0.9857 | Book Value 10.959 | Operating Margin 0.855 | Profit Margin 0.0249 | Return On Assets 0.0248 |
John |
John Hancock Income Debt to Cash Allocation
Many companies such as John Hancock, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
John Hancock Income has 91.3 M in debt with debt to equity (D/E) ratio of 0.6, which is OK given its current industry classification. John Hancock Income has a current ratio of 0.1, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for John to invest in growth at high rates of return. John Hancock Total Assets Over Time
John Hancock Assets Financed by Debt
The debt-to-assets ratio shows the degree to which John Hancock uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.John Hancock Debt Ratio | 25.0 |
John Hancock Corporate Bonds Issued
John Long Term Debt
Long Term Debt |
|
Understaning John Hancock Use of Financial Leverage
John Hancock's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to John Hancock's current equity. If creditors own a majority of John Hancock's assets, the company is considered highly leveraged. Understanding the composition and structure of John Hancock's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
| Last Reported | Projected for Next Year | ||
| Long Term Debt | 198.2 K | 188.3 K | |
| Short and Long Term Debt | 82.2 M | 86.3 M | |
| Short Term Debt | 105 M | 78.2 M | |
| Short and Long Term Debt Total | 82.2 M | 73 M | |
| Net Debt | 82.1 M | 73 M | |
| Net Debt To EBITDA | (20.56) | (21.59) | |
| Debt To Equity | 0.64 | 0.40 | |
| Interest Debt Per Share | 7.45 | 5.84 | |
| Debt To Assets | 0.36 | 0.25 | |
| Total Debt To Capitalization | 0.38 | 0.26 | |
| Debt Equity Ratio | 0.64 | 0.40 | |
| Debt Ratio | 0.36 | 0.25 | |
| Cash Flow To Debt Ratio | 0.06 | 0.06 |
Thematic Opportunities
Explore Investment Opportunities
Additional Tools for John Stock Analysis
When running John Hancock's price analysis, check to measure John Hancock's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy John Hancock is operating at the current time. Most of John Hancock's value examination focuses on studying past and present price action to predict the probability of John Hancock's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move John Hancock's price. Additionally, you may evaluate how the addition of John Hancock to your portfolios can decrease your overall portfolio volatility.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.